Author: azeeadmin

Running a startup can be a complicated, difficult process fraught with pitfalls and ample opportunities to make mistakes. But the logistics of setting up a startup should be simple, because over the long run, complicated equity setups and cap tables cost more money in legal fees and administration time.

My company, Pulley, has helped more than a thousand founders build their cap table and equity structure.

Here’s a tactical guide to get your startup running in just four days.

Day 1: Incorporate

It is now standard to incorporate your company at the seed stage itself. In the U.S., startups incorporate as Delaware C Corporations with 10 million authorized shares. This is the standard setup when you use services like Stripe Atlas or Clerky.

Post incorporation, you need to answer a few questions on how to grant equity to founders and future employees.

First, you should determine how you want to split the equity between the founders. There is no standard for doing so — some founders split shares equally, while others do 49/51 splits for control. Some founders even may have an 80/20 equity split because one founder spent an extra year on the idea.

At the end of the day, a good equity split is one that all founders find fair. If you can’t agree on a structure, you should have a deeper discussion on whether this is the right team to work with for the next decade or more.

Every time there is a rumor of a Google algorithm update, a general panic ripples through the SEO community. There is a collective holding of breath while the numbers are analyzed and then a sigh of relief (hopefully) when they survive the algorithm update unscathed.

After the update is released, and especially if it is confirmed by Google, a slew of articles and pundit analyses attempt to dissect what Google changed and how to win in the new paradigm.

I believe all this angst is entirely misplaced.

The Google algorithm is made out to be some sort of mystical secret recipe cooked up in a lab designed to simultaneously rob and reward sites at the whims of a magical, all-knowing wizard. In this outdated schema, the goal of every SEO and webmaster is to dupe this wizard and come out on the winning side of every update.

Join us on Thursday, June 10 at 12:30 p.m. PDT/3:30 p.m. EDT for a Twitter Spaces chat with author Eli Schwartz.

We’ll discuss SEO and growth marketing, so bring your questions!

This idea is rooted in a fundamental misunderstanding of what happens in a Google algorithm update — and a fundamental misunderstanding of Google. The reality is, algorithms are not your enemy. They are designed to help create a better, more accurate user experience. Here are a few pieces of perspective that should help reframe your relationship with algorithms.

Google is just trying to help

First, let’s establish this: Google is only trying to help. The company wants to ensure a pleasurable, high-quality user experience for the searcher. Nothing more, nothing less. It is not a wizard, and its system is not meant to rob and reward sites arbitrarily.

Keep that in mind as we continue.

Google’s algorithms are extensive and complex software programs that constantly need to be updated based on real scenarios. Otherwise, they would be totally arbitrary. Just as bugs are reported and fixed in a software program, search engines must discover what’s not working and create solutions.

Google, like any other software company, releases updates with big leaps forward to its products and services. However, in Google’s case, they are called “major algorithm updates” instead of just product updates.

You are now armed with the knowledge of exactly what a Google algorithm update is. Is it not, then, gratifying to know there is never a reason to panic?

Have you worked with a talented individual or agency who helped you find and keep more users?
Respond to our survey and help us find the best startup growth marketers!

A drop in search traffic isn’t necessarily hurting you

If a site experiences a drop in search traffic after a major algorithm update, it is rarely because the entire site was targeted. Typically, while one collection of URLs may be demoted in search rankings, other pages likely improved.

Seeing the improved pages requires taking a deep dive into Google Search Console to drill into which URLs saw drops in traffic and which witnessed gains. While a site can certainly see a steep drop off after an update, it is usually because they had more losers than winners.

Any drop is most definitely not because the algorithm punished the site.

If you see a drop, in many cases, your site might not have even lost real traffic; often, the losses represent only lost impressions already not converting into clicks. With a recent update, Google removed the organic listing of sites that had a featured snippet ranking. I saw steep drops in impressions, but the clicks were virtually unchanged. Gather and study your granular data for a clearer rendering of information rather than assuming the site has become a winner or loser after an update.

Focus on a great user experience, just like Google

Websites that focus on providing an amazing and high-quality experience for users shouldn’t fear algorithm updates. In fact, updates can provide the needed impetus to excel. The only websites that have something to fear are those that should not have had high search visibility in the first place because of a poor user experience.

If your website provides a great experience for users, updates are actually likely to help you because they winnow those poorer quality sites out of the running.

If you focus on a good user experience, there will be pages that may lose some traffic in algorithm updates, but in aggregate, the site will typically gain traffic in most scenarios. Digging into the granular data of what changed will likely support the idea that websites do not suffer or benefit from algorithm updates — only specific URLs do.

Updates are a fact of search life

Google will, and should, continuously update its algorithms. Google’s primary motivation is to have an evolving product that will continue to please and retain its users.

Consider that if Google leaves its algorithm alone, it risks being overrun by spammers that take advantage of loopholes. A search function that provides too many spammy results will soon go the way of AOL, Excite, Yahoo and every other search engine that is functionally no longer in existence. Google stays relevant by updating algorithms.

Updates are a part of search life.

Chase the user, not the algorithm

Instead of chasing the algorithm, which will inevitably change, I believe that every website that relies on organic search should train its focus somewhere more important: on the user experience.

The user is the ultimate customer of search. If your site serves the user, it will be immunized from algorithm updates designed to protect the search experience. There is no algorithm wizard — only SEO masters who have figured out how to apply best processes, best procedures and actions for your website.

Algorithms and updates have only one purpose: help a user find exactly what they seek. Period. If you are helpful to the user, you have nothing to fear.

This post is an excerpt from “Product-Led SEO: The Why Behind Building Your Organic Growth Strategy.”

To succeed, every startup needs to find and keep more users, but our attention spans get shorter every year. Eventually, your company will hire someone who’s up to speed with the latest problems and solutions in growth.

In the meantime, TechCrunch is here to help.

We’re asking founders to share a brief recommendation for talented growth marketers who have made a difference for them. We’ll use your responses to feature the best growth experts to our audience through our articles, events, and soon, a free database list.

Whether you worked with a great individual or an agency, we want to know who helped you figure out great solutions in SEO, social media, content marketing, analytics and other growth mechanisms.

There are a million marketers out there, most of whom have never worked with serious startups before. The types of people we want to spotlight will be proven experts in using product management, engineering, data and marketing techniques specifically for ambitious companies like yours.

If you are a growth marketer, we encourage you to share this survey with your clients (but completely discourage self-recommendations).

Founders and other startup leaders, please fill out this nomination form, and be on the lookout for more from top marketers in the next few weeks (with a few more things in store). If you had filled out our email marketing survey from a few weeks ago, thank you! We’re putting your responses to work as part of this project already.

Have any questions? Email ec_editors@techcrunch.com.

Google today launched the second beta of Android 12. The first beta, which launched at Google’s I/O conference in May, introduced us to the first glimpses of Google’s new ‘Material You’ design system, though many of the promised new features and design tweaks weren’t part of this first beta yet. With this new beta, Google is bringing more of these to its testers (you can sign up for the beta here), including its new privacy dashboard that makes it easier for users to see which apps recently used a phone’s microphone, camera and location.

Other new features available in the beta are the addition of microphone and camera indicators that show users if an app is using those, as well as new Quick Setting toggles to disable app access to them. When access is toggled off, apps will receive blank audio and camera feeds. Related to this, Google is also bringing a clipboard read notification to Android that shows readers when an app is reading from the clipboard.

Image Credits: Google

Also new in beta 2 is a new Internet Panel that makes it easier for you to switch between internet providers, wifi networks, etc.

Image Credits: Google

With this release, Google is now one release away from reaching platform stability in August. As the company notes, now would be a good time for developers to finish their compatibility testing and release compatible versions of their apps, SDK and libraries. Given the current monthly release cadence, we’ll likely see a final release of Android 12 in September.

Like before, you’ll need a compatible device to try out the beta. Unlike with some the earlier preview releases, this list includes a lot of non-Google devices, with Sharp joining the beta program today, for example. You can find a full list of supported devices — and instructions for how to get started on non-Google devices — here.

Image Credits: Google

Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.

“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”

Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.

Dear Sophie,

I started a tech company about two years ago, and ever since I’ve dreamed of expanding my company in the United States.

I would love to have a green card. Someone mentioned that I should apply for a diversity green card. Would you please provide me with more details about it and how to apply?

— Technical in Tanzania

Dear Technical,

As a startup founder from Tanzania, you have several immigration options available to you, including the Diversity Immigrant Visa (green card) Program.

My law partner, Anita Koumriqian, and I recently discussed the Diversity Immigrant Visa Program (DV Program) on a podcast episode. Take a listen for how to apply and tips for applying. Each year, the U.S. Department of State, which oversees the DV Program, reserves 50,000 green cards for individuals born in countries that have low rates of immigration to the United States. The State Department publishes instructions each year, which includes the countries whose natives are eligible to register for the annual diversity lottery. Here is the latest version.

How does the diversity lottery work?

You must register online in the fall — usually from early October through early November — for the annual random lottery by completing the Electronic Diversity Visa Entry Form (DS-5501). There is no cost to register for the lottery, but be aware that you will be automatically disqualified if you register yourself more than once, and incomplete forms will not be accepted.

Once you complete the online registration form, you will get a confirmation number. Do not lose this number! It is the only way to access the online system that will tell you whether you were selected in the lottery and are eligible to submit a green card application. In May, registrants can log into the online system to find out whether they’ve been selected. No notification will be sent by email or snail mail; checking online by entering your confirmation code is the only way to find out. After you enter your confirmation code online, you will receive a diversity visa number, which you will use to determine when you can file your green card application.

German electric air mobility company Lilium has partnered with aerospace manufacturer Honeywell to develop the electronics and mechanical systems for the 7-seater Lilium Jet, the company’s debut eVTOL.

Honeywell will supply its compact fly-by-wire system, a flight control component that will be responsible for controlling all of the Jet’s moving parts, and the aircraft’s avionics system. eVTOL company Vertical Aerospace is also using Honeywell’s compact fly-by-wire system in its aircraft, but the avionics system for the version Lilium will be using was designed to suit the specific technical requirements of the Lilium Jet.

Honeywell is a giant in the aerospace manufacturing industry, and one of the first to create a dedicated Urban Air Mobility team. The company has also become an investor in Lilium by participating in the common stock private investment in public equity (PIPE) offering announced in connection with Lilium’s SPAC merger with Qell Acquisiton Corp.

The two companies have been in discussion and collaboration since February 2019, Lilium’s chief program officer Yves Yemsi told TechCrunch. He said Lilium identified core competencies it wanted to keep in-house – the design and assembly of the propulsion and battery systems and the final aircraft assembly, for example – and will partner with experienced suppliers for other parts of the aircraft.

“Collaborating with experts, aerospace partners, is a deliberate choice for us,” he said. “It will help us to reduce our time to market and still be safe.”

A key advantage of the partnership is how it will help the certification process, Yemsi explained. Some of Honeywell’s components have achieved a Technical Standard Order (TSO), which is a minimum performance standard recognized by the FAA. Using TSO authorized components could help save time in the certification process.

Lilium already has teams of people working on getting Design Production Approval and Production Organization Approval, two types of approvals issued by the European Union Aviation Safety Agency (EASA) that essentially verify the company is able to bring a product to market. These approvals complement the type certification that Lilium aircraft (and all other eVTOL) must achieve with both the U.S. Federal Aviation Administration and the EASA before the company can start commercial operations.

The partnership with Honeywell, an established aerospace manufacturer, marks a major point of progress for Lilium. The next step after Honeywell starts delivering components is to develop and test the aircraft in a system integration laboratory, which tests on the ground that the avionics and electronic systems, Yemsi said.

“Now the hard work begins,” he said.

Even as NFT sales dip below their most speculative highs, startups aiming to tap into their potential are still scoring big funding rounds from investors who believe there’s much more to crypto collectibles than the past few months of hype.

Mythical Games, an NFT games startup based out of Los Angeles, has banked a $75 million raise from new and existing investors betting on the startup’s aim to expand the ambitions of their first title and locate a substantial platform opportunity amid helping developers build blockchain-based gaming experiences.

The round was led by WestCap. Existing investors were joined by 01 Advisors, Bilibili, Gary Vaynerchuk, the Glazer family, Moore Capital, and Redbird Capital in the Series B funding. The startup has raised a whopping $120 million to date.

The company has been building a title called Blankos Block Party that seems to be Fall Guys meets Roblox meets Funko Pop. The PC game capitalizes on a number of big social gaming trends around user-created content, while adding in a marketplace where users can buy avatar figures and accessories crafted by a variety of artists and designers that Mythical has partnered with. Users can buy or sell the limited run or open edition items through their marketplace. Unlike some other NFT platforms, the goods live on a private blockchain so they can’t be re-sold on public marketplace platforms like OpenSea.

Mythical Games is part of a growing movement to bring blockchain-based game mechanics mainstream while leaving behind elements of crypto platforms that are seen as less ready for primetime. Users can purchase avatars on the platform with cryptocurrency through BitPay but they can also pay with a credit card. Users don’t need to walk through the mechanics of setting up a wallet or writing down a seed phrase either.

While the company has big hopes for Blankos as it onboards more users, the bigger investor opportunity is likely in the game engine that the team is building. The startup’s “Mythical Economic Engine” is being designed to help budding game builders create NFT-based marketplaces that won’t get them in any regulatory trouble, marrying compliance across geographies and tools that help creators comply with anti-money laundering laws and know-your-customer frameworks.

“With any new market like [NFTs], it goes through all these different cycles,” Mythical Games CEO John Linden tells TechCrunch. “We think this will actually change gaming for the long haul. The more we talk to game studios, we’re finding more and more potential use cases.”

After co-founding Insomnia Consulting, Stacey Abrams and Lara O’Connor Hodgson started Nourish to address a personal problem.

“We were at a meeting, I think for one of my campaigns,” explains Abrams, the Georgia-based lawyer and politician whose voting rights work became a focal point for the country in 2020. “[O’Connor Hodgson] needed to put together a baby bottle and had to trust the waiter to take the bottle back and wash it. She said, ‘I just wish there was a Dasani for babies.’ ”

Ultimately, however, Nourish ran into an issue. The company was a victim of its own successes, to hear Abrams describe it — or, more accurately, a victim of a system that didn’t provide it the right tools to grow. A problem with invoicing ultimately stopped the childcare in its tracks. But it was precisely those failings that planted the seed for their next company, the simply named Now.

“We started looking for a loan. All we needed was the money to meet the order. This was during the credit crunch, and we could not get it,” Abrams tells TechCrunch. “We went from bank to credit union to factoring, and every time we got near the end, the credit model changed and we got kicked out of the program. Finally, unfortunately, we had to let our business die. We grew to death. We got too big to meet the needs and didn’t have a solution.”

Abrams and O’Connor Hodgson founded Now in 2010 to provide small businesses a quicker method for getting invoices paid. When a business submits an invoice through NowAccount, the service pays 100% of the invoice, minus a 3% merchant fee.

Image Credits: Now

“We sell bonds in the capital market, just like American Express does,” O’Connor Hodgson explains. “We have very low-cost capital that we’re able to give that small business their revenue immediately. And then we’ve built a system that allows us to manage the cost and risk of that, because we’re going to then wait 30+ days to get paid.”

Today the Georgia-based company announced that it has raised $9.5 million in Series A funding. The round, led by Virgo Investment Group and featuring Cresset Capital Partners, will be used to help scale Now’s offerings. It comes as the pandemic has put even more of a strain on invoices for many companies. O’Connor Hodgson says the average wait time for invoice payment expanded from around 50 days to between 70-80.

“We have served over 1,000 small businesses and we have processed over $700 million in transactions,” says O’Connor Hodgson. “So that’s $700 million of their capital that they have received sooner.”

Thus far, Now’s growth has largely been a product of word of mouth. The new influx of funding will go, in part, to market and advertising to get the product in front of more small businesses.

“When you’re a small business and someone tells you we have a solution to a problem that no one has been willing to solve, we sound like magic,” says Abrams. “And what we want people to understand and a big part of our scaling challenge has been, you have to experience it to believe it. And getting companies to understand that this actually does work the way we say that it does actually benefit you in the way we imagine, and that it works.”

TechCrunch Disrupt has a long history of bringing leading venture capitalists to the stage to yammer about their industry. Our impending TC Disrupt conference happening on September 21-23 is no different. This time around one of our investor guests is Arun Mathew of Accel, a venture capitalist that you might recall from his recent participation in Webflow’s huge $140 million Series B.

But we aren’t merely asking Mathew out to the event to chat low-code, or SaaS, or simply current intra-venture capital investing dynamics. Instead, he’ll be taking part in our panel on alternative financing (alt-finance) with a few folks that aren’t venture capitalists, but still deploy capital into startups.

Having an Accel partner take part in the panel makes good sense, as the venture firm has an interesting way of approaching bootstrapped companies. Namely that it is willing to show up to pretty large companies and write huge checks. That’s how Accel got into Qualtrics, for example, a deal that worked out pretty well.

But Accel invests from seed through super-late stage, making Mathew the perfect person to bring the venture perspective to the conversation.

The chat should hit on revenue-based financing, other more exotic forms of alt-finance and where the venture world may see capital partnerships, and funding rivalries. Our goal won’t be to incite an argument, but instead to unfold the private capital markets in a manner that helps fans of traditional VC — if there is still such a thing in today’s Tiger Global-led world — and believers in newer methods of capital deployment learn from each other. And so that founders can carve the most reasonable path for themselves as they seek to grow their businesses.

All told it should be a bop and I will see you there!

Virgin Orbit is getting great to launch its next mission to space, with a target window at the end of this month. This will be the first time Virgin Orbit is flying after its first successful orbital launch in January, and it’s carrying seven small satellites on behalf of clients including the U.S. Department of Defense, and the Royal Netherlands Air Force. It’s also going to be the first time everyone can watch along live as Virgin Galactic makes the trip to space, since the company is streaming the mission via YouTube.

Previously, Virgin Orbit has opted not to provide live video of its flights, choosing instead to provide a feed of text updates via its social media channels. The YouTube stream should provide unprecedented views of the Virgin launch process, which includes transporting its small Launcher One rocket on to a high altitude for a mid-air launch from the wing of a modified Boeing 747 carrier aircraft.

Live streaming launches is pretty much de rigueur in the space industry at this point, especially among the crop of so-called ‘new space’ companies that includes SpaceX, Rocket Lab and Blue Origin. SpaceX has even been doing it throughout its Starship development process, which is unusual because it’s broadcast a number of failures on top of its successes.

Virgin Orbit’s novel aircraft-assisted launch process should mean its streams provide some unique perspective vs. the vertical take-off group, so it’s probably worth keeping an eye on this one.